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There is a growing interest in the succession plan at Kotak Mahindra Bank as the term of incumbent Managing Director and CEO Uday Kotak is likely to end in December 2023, say Analysts.
According to a report by Emkay Global Financial Services, a recent analyst meet on the bank’s 811 product marked an introduction of Uday Kotak’s son Jay Kotak to the investor community.
“Jay Kotak (son of Uday Kotak who is retiring in December 2023 due to the RBI’s dictum) comes across as a young enthusiast, but he has a long way to go to gain business acumen and democratic leadership skills,” it said.
We will be closely watching the succession planning, with possibly two EDs in the fray — KVS Manian and Shanti Ekambaram for the MD position, and the impact, if any, of potential holding company norms by the RBI, the brokerage further said.
A report by ICICI Securities said key monitorables would include ramp up in retail liabilities and succession planning.
“The meet also marked an introduction to Promoter cum MD and CEO Uday Kotak’s son, Jay Kotak (elevated as co-head of 811 product), to the analyst/investor community,” the report said.
Uday Kotak had in May 2021 told reporters that the bank and its board are fully committed to long-term stakeholder value and are fully aware of their responsibilities in terms of succession planning.
“Members and board are fully aware of their responsibilities and will act in a manner which is appropriate and responsible,” he said.
The RBI had in April 2021 capped the tenure of MD and CEOs and Wholetime Directors (WTDs) at 15 years from the date of appointment to improve corporate governance norms in banks. The individual will be eligible for re-appointment as MD and CEO or WTD in the same bank, if considered necessary and desirable by the board, after a minimum gap of three years.
811 product
At the analyst meet, Kotak Mahindra Bank also highlighted the journey of its 811 product, which was launched in 2017. The bank has opened 1.23 crore full KYC savings accounts under the product by March 2022 with 53 lakh paid debit card users.
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